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1. { LEASING

2. Automobile leasing is not a simple matter. Cars
lose value or depreciate over time. When you
lease a car for two years, you are paying for two
years of depreciation in monthly payments plus
interest.
At the end of the lease, the automobile can be
either sold to you or someone else for its value at
that point.
There is no ownership, you simply pay for the use
of the automobile. The manufacturer's warranty
covers most repairs but all maintenance costs
and insurance are your responsibility.
Leasing Facts

3.  Lessor. The company that owns the
automobile.
 Lessee. The consumer.
 Gross capitalized cost. The price of the
vehicle for leasing purposes.
 Capitalized cost reduction. Amount of cash
down payment, trade-in or rebate.
Term Of Leasing

4.  The monthly payment is lower than when
buying a car.
 Leasing also allows consumers to drive a
more expensive vehicle than they can afford
to buy.
 Leasing is easier since negotiating over the
price is downplayed.
ADVANTAGES

5.  When the lease ends, you have built up no
equity in a vehicle.
 You have nothing to trade in on a new car,
so you will probably lease again.
 If a lease runs longer than the vehicle's
warranty, the lessee may have to pay for
repairs that would have been covered.
 In most cases, leasing is more expensive
than buying on credit.
DISADVANTAGES

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